Strong Growth and Profitability at Enerpac Tool Group Corporation (EPAC) Under CEO Paul Sternlieb

2 weeks ago 8

Soumya Eswaran

Mon, Apr 28, 2025, 5:49 AM 3 min read

SouthernSun Asset Management, LLC, an concern absorption firm, released its “SouthernSun Small Cap Strategy” archetypal 4th 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the archetypal quarter, the strategy returned -11.32% connected a gross ground (-11.48% net) compared to a -9.48% instrumentality for the Russell 2000 Index and -7.74% for the Russell 2000 Value Index. The strategy returned -12.55% connected a gross ground (-13.21% net) for the trailing 12 months compared to -4.01% and -3.12% respectively for the indexes implicit the aforesaid period. In addition, delight cheque the apical 5 holdings of the strategy to cognize its champion prime successful 2025.

In its first-quarter 2025 capitalist letter, SouthernSun Small Cap Strategy highlighted stocks specified arsenic Enerpac Tool Group Corp. (NYSE:EPAC). Enerpac Tool Group Corp. (NYSE:EPAC) provides a wide scope of concern products and solutions. The one-month instrumentality of Enerpac Tool Group Corp. (NYSE:EPAC) was -10.32%, and its shares gained 10.70% of their worth implicit the past 3 months. On April 25, 2025, Enerpac Tool Group Corp. (NYSE:EPAC) banal closed astatine $40.23 per stock with a marketplace capitalization of $2.176 billion.

SouthernSun Small Cap Strategy stated the pursuing regarding Enerpac Tool Group Corp. (NYSE:EPAC) successful its Q1 2025 capitalist letter:

"Enerpac Tool Group Corp. (NYSE:EPAC) was the apical contributor successful the Small Cap strategy. This absorption team, led by CEO Paul Sternlieb, has done an fantabulous occupation improving profitability since helium took the presumption 4 years ago. Over the past 3 years, EBITDA per stock has grown astatine a 24% compounded rate. Leadership has begun to enactment much absorption connected commercialized effectiveness and excellence, and they are opening to spot results, evidenced by caller integrated growth. Also, galore of EPAC’s products are utilized successful infrastructure construction, and they are yet opening to spot meaningful task enactment successful U.S. infrastructure which could assistance their income successful the coming quarters. In our opinion, the keys to occurrence going guardant are continued commercialized and operational execution and however they volition usage the currency generated from this precocious borderline business. The institution continues to measure bolt-on M&A candidates; but, successful the lack of bully M&A targets, we volition look for continued stock buybacks."

A skilled technologist moving connected a recently developed hydraulic instrumentality with a presumption of the mill floor.

Enerpac Tool Group Corp. (NYSE:EPAC) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge money portfolios held Enerpac Tool Group Corp. (NYSE:EPAC) astatine the extremity of the 4th quarter, compared to 18 successful the 3rd quarter. Enerpac Tool Group Corp.'s (NYSE:EPAC) gross for the fiscal 2nd 4th of 2025 accrued 5.1%. While we admit the imaginable of Enerpac Tool Group Corp. (NYSE:EPAC) arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is arsenic promising arsenic NVIDIA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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